Your home is costing you more than you think, experts warn

When thinking about housing affordability, most people define it as a relationship between the income you earn and the cost of your rent or mortgage. 

But a team of researchers from Curtin University are trying to change the story. 

In a recent report, Dr Adam Crowe and Dr Steven Rowley stated that poor-quality housing is slamming vulnerable Australians with extra costs that aren’t always taken into consideration. 

For instance, badly-insulated homes may costs residents hundreds of dollars extra in heating or cooling bills. A home located far away from major centres of work may rack up extra transport and petrol costs, while a mould-infested home may hit residents with hefty medical bills. 

“Generally governments understand housing affordability as a relationship between housing costs and household income. What is not considered is whether that housing is of an adequate standard that doesn’t negatively affect household health, wellbeing and other essential costs,” said Dr Crowe, the lead researcher on the project. 

The oversight is concerning given that these extra ‘hidden costs’ can take up a large proportion of household income. 

For example, lower-income households in Australian capital cities regularly spend up to 9.4 per cent of their total family income on commuting costs, as shown by the Australian Housing and Urban Research Institute (AHURI). 

Even ordinary Australian homes can generate hidden costs for residents. 

“Although the World Health Organization recommends a minimum healthy indoor temperature of 18ºC […] research has shown that Australian homes can reach average minimum temperatures as low as 7.5ºC during winter months,” the report stated. 

Tight budgets may also force some Aussies to choose inadequate housing that has issues with mould and damp, insects, vermin, and poor insulation – eventually leading to doctor costs down the line. 

“Households should have access to an adequate standard of housing without the cost burden impacting household health, wellbeing and their non-housing essential expenditure,” Dr Crowe said.